It can be handled, though, by cutting taxes in other areas. E.g. Make the gas tax a percentage of the price instead of $0.18/gal or whatever it is in your locality. Reduce the sales tax by an amount to make it revenue neutral in that locality. Make up the difference, if any, by increasing property taxes on homes valued at over $1M (or whatever number makes sense in a particular area).

It's not an insurmountable problem, and as you show, making gas (and coal and oil and natural gas) more expensive to burn will cause people to use less of it and make renewables/solar/wind relatively cheaper.

Cheers,
Scott.